3. $8,983,125 SHOW ME HOW PR 7-1A FIFO perpetual inventory OBJ. 2,3 The beginning inventory at Midnight Supplies and data on purchases and sales for a three- month period ending March 31, are as follows: Date Transaction Number of Units Per Unit Jan. 1 Inventory 7,500 $ 75.00 Total $ 562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of merchandise sold for the period. Journal- ize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31. 5. Based upon the preceding data, would you expect the inventory using the last-in, first- out method to be higher or lower? 1. D Date Jan, 1 PURCHASES Cost of Merchandise Sold Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity INVENTORY Unit Cost Total Cost 7500 $ 75 562,500 1 10 22500 85 1,912,500 22500 85 1,912,500 2 28 7,500 75 562,500 B 28 3750 85 318750 18,750 85 1,593,750 4 30 5 Feb. 5 3750 1500 85 318750 15000 85 1,275,000 6 10 7 10 8 16 9 16 20 28 21 Mar. 5 22 5 23 14 24 14 25 25 26 25 27 30 28 30 29 31 Balances i 30 31 2. 32 33 34 35 36 37 38 39 3. Gross Profit 40 41 4. Ending Inventory 42 43 5. 44 45 46